BANK OF BARODA ANNOUNCES FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE 2023
Bhubaneswar (05/08/2023): Bank of Baroda has announced the Financial Results for the Quarter ended 30th June 2023. Key Highlights-Bank of Baroda (BOB) quarterly Net profit higher by 87.7% YoY at INR 4,070 crore in Q1FY24. BOB has delivered ROA of more than 1% and ROE around 20%, consistently for last 4 quarters. This robust growth in profitability was supported by healthy Operating Income growth of 42.9% YoY in Q1FY24. Operating income growth was driven by strong Net Interest Income (NII) growth of 24.4% YoY in Q1FY24 coupled with robust growth in Non-Interest Income which grew 2.8x YoY. Sustained NII growth is attributable to growth in advances of 18.0% (YoY) coupled with traction in Net Interest Margins (NIM), which grew 25 bps YoY at 3.27%.
Strong growth in Income coupled with subdued increase in Opex has resulted in robust Operating profit growth of 73% YoY for Q1FY24. The Bank has been able to effect a reduction in the Cost to Income ratio (excluding Revaluation of Investment) by 166 bps YoY to 47.43% for Q1FY24. BOB has witnessed significant improvement in its Asset quality with reduction in GNPA by 275 bps YoY to 3.51%.
Bank’s NNPA improved to 0.78% with a reduction of 80 bps YoY. BOB’s balance sheet remained robust with healthy Provision Coverage Ratio (PCR) of 93.23% with TWO & at 78.52% without TWO. This strong and sustainable improvement in asset quality has resulted in 5 bps YoY declined in Credit Cost at 70bps for Q1FY24.
Excluding prudential provisions credit cost would have been 44 bps in Q1FY24. BOB’s Global Advances registered a strong YoY growth of 18.0% in Q1FY24 led by robust retail loan book growth.
Bank’s organic Retail Advances grew by 24.8%, driven by growth in high focus areas such as Auto Loan (22.1%), Home Loan (18.4%), Personal Loan (82.9%), Mortgage Loan (15.8%), Education Loan (20.8%). Bank achieved a total business of INR 21,90,896 crore as of 30th June 2023, registering a growth of 17.0% YoY .
